Advantages Of Offshore Company Incorporation In Hong Kong

• May 31, 2016

Offshore Company Incorporation

Establishing an offshore business entity has been in trend for decades. The primary reasons are, setting up an offshore company can highly eliminate the burden of tax, can minimize reporting requirements, reduce audit risks and provide a privacy protection. For those doing business using an offshore business entity, it is indeed a smart move.

Hong Kong is a Great choice for Offshore Business

Setting up an offshore company in Hong Kong is an outstanding way to house a company’s global corporate profit. It also minimizes tax. And if there isn’t any trade activities within Hong Kong, companies will be legally tax exempted

An offshore company can be quickly set up in Hong Kong. Offshore company incorporation can be done within a week because of the well-founded banking facilities in Hong Kong. Such companies require one director, one shareholder of any nationality. The country can arrange clients with a lot of banks with no foreign exchange control. Even the government has strong confidentiality guidelines when it comes to client handling

Client’s companies are legally tax exempt provided there are no trade activities within the city. Moreover, there is no withholding tax, no capital gains tax, no sales tax, no value added tax as well as no accumulated earningstax imposed on the income of the company

An offshore company need not have to pay taxes on earnings from outside of Hong Kong

Hong Kong based offshore companies are not considered as tax avoidance mechanism. As a result, it is easy for such companies to open corporate bank accounts globally

Most importantly, offshore companies have numerous uses such as shipping company, international trading, owning real estate, holding company, international consulting services and owning copyright and patents

Steps required for offshore company incorporation

Choose a business name

Prepare articles of association

Select one director

Select a shareholder

Select one resident company secretary

Register the office address

Prepare and sign articles of association and other forms

Submit documents and get certificate of incorporation

Benefits of Offshore Company Incorporation

With the easy availability of global corporate banks in Hong Kong, there is no requirement to rent physical office to complete company formation, in fact, virtual offices are also allowed. Companies that incorporate in Hong Kong benefit from its low and simple tax structure, which is limited to a maximum of 16.5 percent and income tax peaking at 15 percent

Moreover, the country’s access to the 450 million people consumer market in Southern China makes it the first choice for company incorporation in Hong Kong. Not only this, companies incorporated in Hong Kong have access to its developed sea links, rail, air and roads that are efficient enough to provide smooth transportation facility from commercial perspective.

Hong Kong’s culture lends a significant business advantage, facilitating entrepreneurs’ understanding of the biggest Asian market. With English and Chinese being the main official languages, English is the common language of business thereby making it easier for the businessmen to conduct business in this country.